UK voters decide to leave the European Union–What’s next (Part I: in the short run)?

In the short term volatility itself will bring more selling as computerized trend-following strategies designed to limit risk create more selling. When the price trend turns negative–as it has today after four previous days had left the S&P ahead by about 2%–these strategies say sell in order to keep up with index volatility and to limit the size of future losses

Odds of a UK exit from the European Union fall but the Fed adds anxiety to the market on U.S. economy

Just as British bookmakers are soothing some financial market angst over the results of Thursday’s Brexit vote, Federal Reserve chair Janet Yellen is turning up the anxiety meter. Basically what Yellen said today is that the Fed is on watch to see whether the U.S. economy will show signs of improvement in growth. That’s a significant shift from last week when Yellen talked about watching to see when the economy showed signs of improvement.

Shift in Brexit polls lead to global rally (except in yen and gold) today

The proximate cause of the bounce was a Sunday Times report on a YouGov poll that restored a slight 1 percentage point lead for the “stay” position over “leave” position. The poll put “stay” at 44% with “leave” at 43%. The difference is well within the poll’s margin of error. “Stay” gets a bigger lead among the country’s bookmakers with “stay” at 72%, up from 65% on Friday, according to Betfair.

Dollar continues to drop, gives oil prices respite

Dollar continues to drop, gives oil prices respite

The U.S. dollar is down for the third straight day and that has given oil prices a chance to recover after six straight declines. The dollar, as measured against the basket of currencies in the Bloomberg Dollar Spot Index, was down 0.42% today, as of 1:30 p.m. New York time Oil, on the other hand, has rallied today with the U.S. benchmark West Texas Intermediate up 2.75% to $47.48 a barrel